Economic news

Oil slightly rises due to decreased number of US rigs and surging jobs market

Oil prices slightly rose today due to a fall in the count of new U.S. rigs and a continued surge of new jobs in the country, which could push up demand for fuel.

Brent futures stood at $65.58 for a barrel, which is 9 cents growth compared to the previous settlement.

U.S. WTI futures reached $62.10 per barrel, 6 cents up from the last end of session.

The U.S. jobs market expanded the biggest in over 1 and a half years last month, as non-farm payrolls leaped by 313,000 jobs, according to Friday’s data by the Labor Department.

In the past week U.S. firms cut oil rigs, which hadn’t happened for nearly two months, RIG-OL-USA-BHI to 796, said Baker Hughes company at the end of last week. And though lesser number of rigs have an impact on future production, current activity surpasses that of a year ago when only 617 rigs were in operation, and it is expected by the majority of experts that U.S. oil production C-OUT-T-EIA, which has attained the level of 10.37 mln barrels a day, will keep growing.

This is a volume bigger than the production of Saudi Arabia, the world’s largest exporter, and just a little short of Russia’s output reaching 11 mln barrels a day.

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